Fri Apr 11 02:21:01 UTC 2025: ## Global Markets Plunge After Trump’s Trade War U-Turn Backfires

**Seoul, South Korea** – Asian markets experienced a sharp downturn on Friday, April 11, 2025, following a dramatic reversal of fortunes on Wall Street. Thursday’s US market losses, which wiped out much of Wednesday’s historic gains, sent shockwaves across the globe. The initial market optimism fueled by President Trump’s temporary pause on many worldwide tariffs quickly evaporated as concerns deepened over the ongoing trade war.

The Nikkei 225 in Japan fell 4.7%, the Kospi in South Korea dropped 1.6%, and Australia’s S&P/ASX 200 shed 2.1%. The yen strengthened against the dollar, while the euro also gained value.

The dramatic shift followed the White House clarifying that US tariffs on Chinese imports would reach 145%, a higher rate than initially announced, triggering further market uncertainty. This clarification, along with China’s announcement of additional countermeasures, resulted in significant losses for US stocks. The S&P 500 fell 3.5% on Thursday, the Dow Jones Industrial Average plummeted 2.5%, and the Nasdaq composite tumbled 4.3%. At one point, the S&P 500’s drop exceeded 6%. Warner Bros. Discovery and Walt Disney Co. suffered particularly sharp losses amidst China’s announcement of reduced US film imports.

The bond market also reacted negatively, with the 10-year Treasury yield fluctuating wildly before settling at 4.39% on Friday morning. The surge in yields earlier in the week had already prompted concerns, attributed to potential hedge fund cash raising and foreign investors divesting from US government bonds.

While President Trump’s temporary tariff pause was initially seen as a positive development, analysts like UBS strategist Bhanu Baweja noted that the damage was far from undone. China’s efforts to build international alliances against the US trade policies further highlight the escalating tensions. The situation underscores the global interconnectedness of financial markets and the significant impact of trade policy decisions on investor confidence. Crude oil prices also declined.

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